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TMI Blog2014 (1) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, proceeding to dispose them off by this consolidated order for the sake of convenience. A.Y. 2007-08 2. The only issue raised by the Revenue through various grounds is about the deletion of addition on account of AMP expenses. The facts apropos this issue are that the assessee is a wholly owned subsidiary of Casio and Computer Company Ltd., Japan (hereinafter called `Casio Japan'). The assessee distributes watches and consumer information products and other related products of Casio Japan, in India. The assessee entered into certain international transactions with Casio Japan which were benchmarked on 'Transactional Net Margin Method' (TNMM). On a reference made by the AO, the Transfer Pricing Officer (TPO) noticed that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... '. The contention that no disallowance could be made out of AMP expenses by benchmarking them separately when the overall net profit rate declared by the assessee was higher than other comparable cases also came to be specifically rejected by the special bench. Resultantly, the transfer pricing adjustment in relation to such AMP expenses was held to be sustainable in principle. In the eventual order, the Special Bench restored the matter to the file of the AO/TPO for fresh determination of Transfer Pricing Adjustment in relation to AMP expenses. In order to enable the determination of correct ALP of AMP expenses, the Tribunal listed out 14 parameters in Para 17.4 of its order which should be examined by the AO/TPO before reaching the final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of a full fledge distributor and directed the AO/TPO to decide the ALP of AMP expenses as per the parameters laid down in the order. We are, therefore, not inclined to uphold the view canvassed by the ld. CIT(A). 5. Before parting with the matter, we would like to mention that the ld. AR relied on an order dated 16.8.2013 passed by the Delhi Bench of the Tribunal in the case of BMW India Pvt. Ltd. Vs. Additional CIT (Del). It was argued that the Tribunal in that case noticed that the assessee was a full fledge distributor and after considering the matter at length has held that no adjustment on account of AMP expenses was called for. It was therefore, argued that the order in the case of BMW India Pvt. Ltd. should be followed in prefe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the appeal for the current year were mutatis mutandis similar to those for the preceding year, except for the fact that in this year the addition was confirmed by the ld. CIT (A) as against its deletion in the preceding year. No separate arguments were advanced by the either side. 9. In view of the admitted similarity of facts for both the years, following the view taken hereinabove for the Assessment Year 2007-08, we set aside the impugned order for this year as well and remit the matter to the file of the AO / TPO for fresh determination of ALP in respect of AMP expenses in accordance with our observations. 10. In the result, both the appeals are allowed for statistical purposes. Order pronounced in the open Court on 13/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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